The Government of Ghana last Friday, recorded an 33.83% oversubscription of its weekly auction of treasury bills despite interest rates experiencing a continuous downward slide.

Government for its tender 1902 held on 10th May 2024 of securities to be issued on 13th May 2024 had set a total target of GH¢3.677 billion for the 91, 182 and 364-day t/bills.

However, at the close of auction, it received and accepted, GH¢ 3.825 billion, GH¢ 822.39 million and GH¢ 272.6 million worth of 91, 182 and 364-day bills respectively, cumulating into total bids of GH¢ 4.921 billion.

This is a significant increase in the GH¢ 3.465 billion worth of bids, received and accepted for the previous week’s tender 1901, which also recorded a relatively lower oversubscription of 17.07%.

The overall improvement in the treasury auction results is despite a decline in interest rates potentially fueled by a further slowdown in inflation as announced by the Ghana Statistical service last Wednesday.

Interest rates for the 91- and 182-day bills saw significant drops from the 25.44% and 27.40% recorded in the previous week’s tender respectively to 25.20% and 27.00% in this week’s tender.

Interest rates for the 364-day bill however remained unchanged at 29.999%.

The cost of borrowing for government on the treasury market has fallen by an average of about 4.5% since the beginning of the year.

Meanwhile government is hoping to raise GH¢3.187 billion from this Friday’s tender 1903.